By Gary Ogle
gogle@wbcowqel.com

Editor’s note: The amount of returns to consumers has been updated by Dan Bute, Utility Office Manager, and is now reflected in the story. Mr. Bute just corrected the numbers this morning from what were provided at Monday’s press conference.

Galion officials reacted Monday to a group seeking to force the city to refund what it says are millions in overcharges by the city’s electric utility. Mayor Tom O’Leary, Auditor Brian Treisch and Utility Office Manager Dan Bute had some numbers of their own.

The mayor held a press conference Monday and at that meeting Treisch went over a detailed report of charges to electric consumers in Galion and Polk Township from 2007 through 2014, and specifically how the disputed Power Cost adjustment affected billing and receipts.

Treisch said there were two periods in which consumers were overcharged and both occurred in 2007. But they total approximately $231,000 – not the $4 million alleged by John Smella, Roberta Wade and Don Faulds.

Furthermore, Treisch’s report purported to show that through that period the city had not sought to recoup some $3.1 million from consumers because as O’Leary put it, “The city didn’t need the revenue.”

While acknowledging the city’s balance in the electric fund can and will be pared down, the three Galion officials did not back down from their premise that electric consumers had not been abused through billing.

Instead, O’Leary went on the offensive against those who are trying to put an initiative on the ballot requiring the refund of $4 million.

“There is an attempt to put an attack on the city’s electric fund,” O’Leary said.

O’Leary did say that if council so chose to refund $231,000, he would support that effort – but not through a ballot initiative.

“You wouldn’t have to go back and tinker with the rates to be able to go ahead,” O’Leary said. “And if there’s agreement to $231,000, the administration, to get that refund out, out there . . . I’m OK with that.”

Treisch said residential consumers are now paying about 2 cents per kilowatt hour less than those customers of AEP or Ohio Edison.

Refunds of the $231,000 in excess charges outlined by the city officials would result in the approximate returns shown below based on average kilowatt usage.
750 avg. kwh/mo     $4.18 return
2000 avg. kwh/mo $11.13
25000 avg. kwh/mo $139.18
350000 avg. kwh/mo $1,948.57

O’Leary addressed another issue the group has brought up and that is using Sawvel and Associates as a consultant on rates. The mayor said if City Council wished to get a second opinion that was certainly reasonable.

Galion City Council will have a regular meeting at 7 p.m. tonight.